High foreign exchange (FX) fees and slow processing times risk impacting UK business growth plans, with 52% of firms saying this is actively damaging relationships with international suppliers.
New research from global financial platform Currenxie also reveals that six in ten (57%) UK businesses say FX costs are too high and curbing growth.
Half (50%) of firms have expanded their international supplier base in the past 12 months, and of those, 91% report increased profits.
These figures demonstrate the clear benefits of international expansion; however, the cost and complexity of cross-border payments are holding businesses back.
Geopolitical uncertainty is compounding these pressures with ongoing disruption in key trade routes, including the Strait of Hormuz, leading to delays and increased costs across global supply chains. As a result, nearly a third (31%) of businesses say they have been forced to pass these rising costs on to customers.
Despite these challenges, international trade remains essential. Almost all businesses (94%) now work with overseas suppliers and/or customers, highlighting the importance of access to global markets in boosting resilience and diversification whilst driving growth.
Businesses recognise that managing FX costs is critical to sustaining this growth. Seven in ten (71%) say access to cost-effective payment solutions is vital to their ability to compete globally.
Sam Coyne, CEO – Europe at Currenxie, said: “Accessing new markets is critical to diversify suppliers, reach new customers and reduce risk – it is essential to drive growth and profitability.
“However, there are several hurdles that come with expanding internationally. For businesses – especially SMEs – with margins under pressure, additional FX fees are a critical challenge that either need to be absorbed or passed onto customers.
“The reliability of cross-border payments is also critical to cash flow management, processing delays are common when using mainstream banks for international transactions. Ultimately, high FX costs or payment delays risk limiting sales, hampering profitability and curbing growth.
“To protect margins and boost competitiveness, businesses must ensure they have access to cost-effective and reliable international payments to reduce FX fees and streamline transactions where possible – specialised fintechs can help businesses to expand into new markets while helping to keep costs down.”
Seven in ten (71%) agree that cost-effective payment solutions are critical to enabling their businesses to compete globally. Cross border payment fintechs can help SMEs unlock access to new markets and lower their FX costs by offering tech that provides simple, cost-effective international payment solutions.
Currenxie is trusted by over 15,000 clients across 100 countries and unlocks access to a full range of payments solutions empowering SMEs to operate globally. Currenxie offers SMEs savings of up to 61% on cross-border FX payments compared to competitors*. Currenxie now surpasses $6 billion in annual payment volume, with over $18 billion transferred to merchants to date.
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